Bridge Facility Agreement for Singapore

Bridge Facility Agreement Template for Singapore

A Bridge Facility Agreement under Singapore law is a legal document establishing a short-term loan facility designed to provide interim financing until permanent financing or an expected cash inflow becomes available. The agreement is structured under Singapore's robust financial regulatory framework, incorporating requirements from the Banking Act, MAS regulations, and common law principles. It details the terms of the facility, including drawdown conditions, repayment terms, interest rates, representations and warranties, and events of default.

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What is a Bridge Facility Agreement?

The Bridge Facility Agreement is commonly used when entities require temporary financing to bridge a gap between immediate funding needs and long-term financing arrangements. This document, governed by Singapore law, sets out comprehensive terms for the bridge facility, including facility amount, purpose, conditions for drawdown, repayment obligations, and security arrangements (if any). The agreement ensures compliance with Singapore's banking regulations and MAS requirements while providing flexibility for various commercial contexts, from corporate acquisitions to real estate transactions.

What sections should be included in a Bridge Facility Agreement?

1. Parties: Identification and details of the lender(s) and borrower(s)

2. Background: Context of the bridge facility and purpose of the loan

3. Definitions and Interpretation: Key terms and their meanings used throughout the agreement

4. The Facility: Details of the bridge facility, amount, and purpose

5. Conditions Precedent: Requirements to be satisfied before drawdown

6. Repayment and Prepayment: Terms of repayment and early repayment provisions

7. Interest: Interest rate, calculation and payment terms

8. Representations and Warranties: Borrower's statements of fact and assurances

9. Covenants: Ongoing obligations of the borrower

10. Events of Default: Circumstances constituting default and consequences

What sections are optional to include in a Bridge Facility Agreement?

1. Security: Details of any security arrangements - include when the facility is secured

2. Guarantee: Terms of any guarantee provided - include when there are guarantors

3. Syndication Provisions: Terms governing multiple lenders - include for syndicated facilities

4. Market Disruption: Provisions for handling market disruption events - include for larger facilities or when specifically required

What schedules should be included in a Bridge Facility Agreement?

1. Form of Drawdown Request: Standard form for requesting facility drawdown

2. Conditions Precedent Documents: List of required documents and conditions

3. Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Form of Transfer Certificate: Standard form for transferring facility interests - for transferable facilities

5. Security Documents: Forms and details of security arrangements - for secured facilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Industries

Banking Act (Cap. 19): Primary legislation that regulates banking business and financial institutions in Singapore, including licensing requirements and restrictions on lending activities

Monetary Authority of Singapore Act (Cap. 186): Establishes regulatory framework for financial institutions and contains provisions on monetary and credit policies

Securities and Futures Act (Cap. 289): Governs securities transactions and financial arrangements, particularly relevant if the bridge facility involves securities or is part of a larger securities transaction

Contracts Act (Cap. 53): Establishes fundamental contract law principles including requirements for valid contracts and rules on contractual interpretation

Companies Act (Cap. 50): Regulates corporate borrowing powers, financial assistance provisions, and directors' duties and corporate authority

MAS Guidelines and Notices: Regulatory guidelines covering lending practices, anti-money laundering requirements, and know-your-customer obligations

Personal Data Protection Act 2012: Governs data privacy requirements for handling borrower information and personal data protection

Stamp Duties Act (Cap. 312): Establishes requirements for stamp duties on loan documentation and related instruments

Bankruptcy Act (Cap. 20): Covers personal bankruptcy proceedings and creditor rights in insolvency situations

Insolvency, Restructuring and Dissolution Act 2018: Comprehensive legislation governing corporate insolvency, restructuring, and dissolution matters

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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